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Re: The total national expense on higher education rose significantly [#permalink]
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Stem Summarized: Expense rose significantly in past 2 years. In Previous assessments expenses fell and tuition costs in universities and colleges did not change during the 2 years.

A. a growing number of students use their parent’s savings to pay for their higher education. Correct, Irrelevant answer providing no support
B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending. - Expenses other than tuition cost rose resulting in the increase - Provides support
C. the average interest rate of students loans rose last year by five percent. - Expenses other than tuition cost rose resulting in the increase - Provides support
D. the demand for a Master’s degree has become more prevalent in many occupations. - Could have made more number of students to pursue higher education- Provides support
E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition. Mix between the two changes leading to an increase in total expenses - Provides support

IMO A
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The total national expense on higher education rose significantly [#permalink]
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The way I see it, there is a paradox going on here. There are two contradicting parts:

First: It was assessed that total national expense on higher education would not increase. Tuition costs didn’t change.

Second: Contrary to assessments, total national expense on higher education rose significantly during the past two years.

EXCEPT is the key word. We NEED to find the answer choice that DOESN’T explain this paradox. We already know that increased tuition costs can’t explain this rose. We also know that any change explaining this rose must have happened during previous two years. With this in mind let’s analyze answer choices.

B. Even if tuition costs didn’t increase, other costs such as increased prices of dormitories and students’ services may indeed contribute to the total national expense on higher education. So out.

C. If interest rates increased last year (in the same timeframe), then this may indeed contribute to the part of expenditure paid by student loans. So out.

D. If more and more people began to take Master studies rather than restrict to Bachelor studies, then this may increase total expenditure. So out.

E. If many students began to pay higher tuition costs because they preferred universities to colleges, then this may increase total expenditure. So out.

A. If a growing number of students use their parent’s savings to pay for their higher education, will total national expense increase? Not always.

While other answer choices talk about numbers, A talks about percentages. A simply means that if before two years 30% of students used their parents’ savings, now this percentage may have increased, let’s say, to 45%. This change in percentages doesn’t necessarily mean that the number of students or cost of any service increased. These numbers may fall even if those percentages increase. Thus A hardly explains why total national expense increased.

Hence A

Originally posted by JonShukhrat on 15 Jul 2019, 09:06.
Last edited by JonShukhrat on 15 Jul 2019, 22:40, edited 1 time in total.
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Re: The total national expense on higher education rose significantly [#permalink]
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A. a growing number of students use their parent’s savings to pay for their higher education.
We are not concerned about the source of higher education funding. We are concerned about why the total expense rose on higher education, while tuition fees stay the same

B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.
other than tuition fees rose and this explains why national expenses rose as a whole, while tuition costs did not change

C. the average interest rate of students loans rose last year by five percent.
Another way for the expense to rise, the loans for high education became expensive and now students have to pay more

D. the demand for a Master’s degree has become more prevalent in many occupations.
This may indicate that more students are applying for the master's degree, therefore increasing total national expence
Honestly, a very tempting option, might be a correct answer : )

E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.
many students switched from low-cost college to high-cost university. Such a situation may increase total national expense

IMO
Ans: A
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Re: The total national expense on higher education rose significantly [#permalink]
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Stimulus-
1. The total national expense on higher education rose significantly
2. The assessments made by the board were contradictory.

We need to find the option that doesn't explain the erroneous assessments of the board. In other words we have to find the option which doesn't explain the increase in the total national expense on higher education in spite of the fact that tuition fees remain constant

A. A growing number of students use their parent's savings. This option tells us about the source of the fees paid by students, but it doesn't explain the reason behind the increase in the total national expense on higher education. This could be the correct answer.

B. There is increase in the prices of dormitories and students’ services such as private tutors or book lending.
Total Expenses= tuition fees + other student services
Hence if there is increase in other student services, total expenses will increase. Eliminate this one.

C. There is increase in the interest rate of the student loans. That will increase the net tuition fees expenses paid by the students for their education, and hence there is increase in the total expenses. Eliminate this one too.

D. The demand for a Master’s degree has become more prevalent in many occupations. Hence, more number of students will go for Masters degree, increasing the total expenses on higher education. Dump this one.

E. Many students preferred State universities in which tuition fees is on the higher side. More tuition fees >>>> more expenses on higher education.
Eliminate it!!

IMO A
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Re: The total national expense on higher education rose significantly [#permalink]
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Total national expense on higher education rose. However, BOE did not anticipate this. This rise happen even though tuition costs in universities and colleges did not change during this period.
Four options below will explain why BOE did not anticipate EXCEPT one. which one it is? We have to eliminate four reasons that resulted in this increase, and keep the one that does not explain the increase.

A. a growing number of students use their parent’s savings to pay for their higher education.
Parents use the personal funding for student. so, many students may not have taken loans to fund their education. however, it does not explain higher expense. so keep the answer.

B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.
there are increases in services and dormitories. gives us reason one to increase in expense.

C. the average interest rate of students loans rose last year by five percent.
there was an increase in the interest paid on education loans. this gives us the reason two to increase in expense.

D. the demand for a Master’s degree has become more prevalent in many occupations.
there was higher demand for master's degree, so more students than anticipated joined college and master degree . this gives us the reason three to increase in expense.

E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.
many student applied to universities that have higher tuition, that explains the reason 4 to increase in expense.

Based on the POE, answer choice A provides us with no reason to explain increase in expense and hence is best answer.
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Re: The total national expense on higher education rose significantly [#permalink]
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The total national expense on higher education rose significantly during the past two years. This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time.


The total national expense on higher education rose significantly during the past two years - here national expenses are general tuition expenses paid by students, dormitory costs, and other costs

This increase occurred contrary to previous assessments made by the Board of Education, and in spite of the fact that tuition costs in universities and colleges did not change during the same period of time - Board of Education haven’t predicted these costs increases, this increase happened even if tuition costs haven’t increased for that period

All of the following statements, if true, help to explain the Board of Education’s erroneous assessments, EXCEPT:
(so now we have to find out answer choice that presents reason why national expenses on education have increased despite the fact that tuition fee hasn't increased)


A. a growing number of students use their parent’s savings to pay for their higher education.
This answer choice makes conclusion weak, because suppose students were paying with loan for their education before, now they pay from parents savings. Hence this situation supposed to decrease not increase total expense on education, so 'except' is applicable here.

B. many colleges raised the prices of dormitories and students’ services such as private tutors or book lending.
This answer directly supports and gives reason why the national expenses increased because of cost of cost increases of some services

C. the average interest rate of students loans rose last year by five percent.
This one is also gives clear reason for NE on education- increases loan prices also affects to this situation

D. the demand for a Master’s degree has become more prevalent in many occupations.This is quite challenging one, we can infer that increased demand for Masters makes more students to make Masters degree hence increasing expenses for education in general

E. many students preferred to apply to state universities instead of colleges, in spite of the higher tuition.
Again we have direct support here, from this statement we can say that university tuition fees are higher than college tuition fees, and preferences of students to apply to universities also increases national expenses on higher education

A is the answer. :heart
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Re: The total national expense on higher education rose significantly [#permalink]
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Re: The total national expense on higher education rose significantly [#permalink]
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